Stamp Duty for First Time Buyers
A permanent change to the initial stamp duty threshold for first time buyers means that anyone buying their first home won’t be liable for stamp duty if the purchase price is below £300,000.
Further relief is available for purchases up to £500,000 to help first time buyers in more expensive locations such as London.
Impact of the changes
The Government predict that the stamp duty changes will help up to 95% of first time buyers in England, Wales and Northern Ireland and up to 80% in London.
The new relief has been introduced with immediate effect and applies to anyone purchasing their first home from November 22nd 2017.
How will it work?
First time buyers will need to declare that they have never owned a property either in the UK or abroad. A special first time buyer code will need to be submitted with the stamp duty return once a home is purchased.
Full Stamp Duty relief is available up to £300,000, with reduced liability up to £500,000. Any purchases above £500,000 will attract the normal stamp duty rates on the whole purchase price.
If a property is being purchased by more than one individual then all parties will need to be first time buyers to qualify for the relief.